A forensic analysis by Gray Wolf Analytics and Forbes reveals that Binance founder Changpeng Zhao (CZ) owns many BNB tokens that have significantly increased his wealth. Accordingly, CZ controls a large portion of the circulating supply of BNB tokens. Amidst this news, metrics show that BNB’s social dominance is falling.
Binance founder’s wealth and BNB control
BNB is the native token of crypto exchange Binance and provides its holders with trading fee discounts on the platform. The maximum supply of the digital asset is limited to 200 million tokens. Additionally, more than 147 million BNB tokens are currently in circulation. Notably, the price of BNB has more than doubled since the beginning of the year. In this process, the token recently recorded a new ATH at $720.
Zhao has never publicly disclosed his BNB holdings. However, in the 2017 whitepaper of BNB’s initial coin offering (ICO), 80 million tokens were allocated to the founding team. Analysis shows that Binance holds 46.2 million of these tokens. We know that Zhao owns 90% of Binance. In this case, that means his stake is around 41.6 million tokens.
Further analysis shows that Changpeng Zhao increased his BNB holdings through additional means. According to Forbes, only 10.8 million BNB was sold to Binance’s ICO instead of the requested 100 million. It was claimed that the unsold tokens, approximately 58 million BNB, were transferred to Zhao’s wallets. Therefore, based on 90% ownership, it is possible to say that CZ controls approximately 52 million of these tokens. Thus, the total assets of the Binance founder from the initial team reward and unsold tokens are approximately 94 million BNB. As a result, Forbes concludes that Zhao’s significant assets place him as the 24th richest person worldwide, with an estimated net worth of $61 billion.
What’s the next goal for BNB?
Crypto analyst Victor Olanrewaju takes a look at BNB’s metrics. Based on this, he shares his price predictions. At the time of writing, the altcoin’s social dominance has dropped to 0.617. This metric tracks interest in a cryptocurrency based on social media and crypto media discussions. Therefore, the decline implies that the community’s interest and engagement in BNB has decreased overall. Therefore, it is difficult for the cryptocurrency to see improved demand that would herald higher prices.
Additionally, Open Interest (OI) dropped to $473.46 million at press time. OI is the value of the sum of all existing contracts for a cryptocurrency in the market. An increase in value means there is an increase in speculative activity around the coin. In many cases this serves as a force for ascension. On the contrary, a reduction in BNB’s speculative positions means that it may be difficult for the price to bounce. As it stands, BNB is bearish. Therefore, BNB is likely to break below key support levels. However, if buying pressure increases, a change in trend is possible.
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